Some days are better for Forex trading than others. 🙂
I’m using the term “better” loosely here to introduce a concept known as a trading day in the Forex market.
Trading Days Vs. Trending Days In The Forex Market
Forex market movement can be partially explained by events that occur during each Forex trading session (remember there are three sessions during each 24-hour period). Broadly speaking, then, each session can be categorized as either a trading day or a trending day, depending on the events that occur that Forex trading session.
What Is The Difference Between Trading Days and Trending Days?
A Forex trading day (and vice versa Forex trending day) is characterized by the following external events and conditions:
- No fundamental announcements (valuable Forex information) are released during the session.
- Price movement is slow.
- Market movement (volatility) during the session creates a Forex trading range of 60 to 90 pips.
- Prices close near the session’s opening price (the daily candlestick for a Forex trading day would look like a doji, or a spinning top)
- Price movement during the session creates an upper bell curve, lower bell curve or prices move sideways (in any case the session’s closing price is near its opening price).
It’s good to know the difference between trading days and trending days when you are attempting Forex trading. This concept will come in handy and will be referenced for specific types of Forex trading strategies that will be different on trading days than trending days. The good news is, both scenarios can be extremely profitable 🙂
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